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Smart Pension Plan

  • Secured adequate standard of living while retired
  • Enjoy investment in high quality global funds for long term wealth creation
  • Direct monthly debit from your CBD account
  • Regular USD income during retirement period
  • Suitable for all nationalities and age at entry up to 55 years
  • Invest as little as USD 250 per month
  • Get regular income in USD for as long as 20 years with Capital Protection of the fund value at the time of starting the payout
  • Very low charges
  • Guaranteed Loyalty Additions of up to 150% of Annual Premium
  • Partial withdrawal and Top-up facility available

Plan Benefit
 Minimum Maximum
Age at entry20 yearsLimited pay
50 years		Regular pay
55 years
Premium paying term (Limited Pay) 5 years
Up to accumulation term
Premium paying term (Regular Pay)
10 years
Accumulation Term
(Limited Pay)
15 years

45 years
Accumulation Term
(Regular Pay)
10 years
Vesting Age
45 years65 years
Payout Term
5 years20 years
Premium (Installment)
Yearly - USD 1800
Half yearly - USD 900
Quarterly - USD 500
Monthly - USD 250 

Unlimited (subject to financial underwriting)
Sum Assured
10 x Annual premium20 x Annual premium

Other Benefits


Low Surrender Charges

  • Surrender charges are extremely low at 5% and 0.5% of first year's premium

Life Insurance Benefit

  • Two options of Life Cover Benefit which needs to be chosen upfront while investing in the Smart Pension Plan:
    • Inclusive Option: Sum Assured or Fund Value [whichever is higher]
    • Exclusive Option: Sum Assured and Fund Value

Partial Withdrawals

  • Partial withdrawals are permitted from your fund with minimum restrictions
  • As long as you retain at least 2 times the annual premium within the fund, you can make partial withdrawals at any time

Paid Up Option

  • Paid up option is available after 3 years of the policy commencement
  • There is no reduction in the Sum Assured and fund continues to stay invested as long as there are sufficient funds to sustain the applicable charges

Top Up

  • Allowed after completion of year 1
  • 96% allocation on top up
  • Top up premium would not be adjusted towards renewal premium(s)
  • Top up premium would not be adjusted for eligibility towards loyalty addition(s)

Guaranteed Loyalty Additions

The Loyalty Additions are added to the fund on policy anniversary date subject to policy being in-force


 Minimum payment term - 5 years Minimum payment term - 10 years
Year 2
6% of Annual Premium
 
Year 3 
6% of Annual Premium
30% of Annual Premium
Year 4 
6% of Annual Premium
20% of Annual Premium
Year 5 
6% of Annual Premium
20% of Annual Premium
Year 6 
6% of Annual Premium
20% of Annual Premium
Year 7 
6% of Annual Premium
15% of Annual Premium
Year 8 
6% of Annual Premium
15% of Annual Premium
Year 9 
6% of Annual Premium
15% of Annual Premium
Year 10 
12% of Annual Premium
15% of Annual Premium

* Loyalty Additions (LA), as mentioned in the above schedule shall be added to the fund value on policy anniversary, only if the premium due in that policy year has been paid in full. The Loyalty Additions are applicable only on active policies and would not be paid in arrears and will not be paid in lapsed and paid up policies.

Premium Allocation Charges

Policy Type Year 1Year 2Year 3 year 4-10 Year 11+ 
Regular Pay67%43%44%4%0%
Limited Pay70%4%4%4%0%

Required Documents

  • Completed and signed application form 
  • Signed Illustration 
  • Passport Copy with valid UAE/ GCC residency visa 
  • Standing order form (For payments by Account Debit) 
  • Medical and/or Financial  Questionnaire (If applicable) 
  • Any other document as required by Orient (As applicable)

How does Smart Pension Plan works?

SmartPensionPlan

Can the premium amount be increased or decreased during the premium payment term?

No. Premium alterations are not allowed in CBD Pension Plan.

If a customer decides he is in need of funds, can he request for a lump sum payout midway during the regular income payout period?

On a case to case, discretionary basis this can be requested for by the client.

How have the underlying funds been performing?

Please refer to fund returns of applicable funds.

Can the customer surrender or make partial withdrawals from the fund at any time?

The customer can surrender the policy at any time after the free look period of 21 days. However, it would obviously not make sense to surrender within the first year as the benefit payable would be 0. From year 2 to 5, the cash value would be fund value minus surrender charge of 5% of Annual Premium. From year 6 onwards, the surrender charge applicable is 0.5% of Annual Premium. The customer can also make partial withdrawals from the fund with the condition that the fund value post withdrawals remains above 2x Annual Premium. Note that there are no charges on partial withdrawals.

What happens if a customer doesn't pay his premiums after 3 years?

If the policy has a positive cash value in the policy, the policy becomes paid up and all charges shall be realized from the fund. The fund will continue to be invested and life cover will continue. Once the cash value becomes less than or equal to the applicable charges, then the policy shall be considered automatically lapsed. Note that if premiums are not paid anytime in the first 3 years, the policy lapses and cash value as of date of automatic lapse will be paid to the policy holder after 2 years.

Is there a life cover during the payout period?

Yes, this option is available. This option needs to be selected at the inception of the policy and cannot be added at a later stage.

Is there a single premium payment option?

Yes.

Is this plan portable? In other words if I choose to let go my UAE/GCC residency status and return to my home country, can I still continue with the plan?

Yes you can. The easiest way to manage this is to continue holding a non-resident USD Savings account in the UAE/GCC (subject to meeting regulatory requirements). Alternatively if you wish to transfer funds for this plan from other countries, it will be subject to meeting / complying with banking and financial regulations /norms of the respective country.

How is this product different from other unit linked plans available in the market?

Pension Plan is designed to ensure you prepare for your retirement with flexibility and offers an opportunity to grow your savings till you retire. The product includes one of the lowest fee/charge structures and offers extraordinary loyalty returns through the plan tenure. CBD Pension Plan allows you to choose regular monthly/ annual returns in USD or a lump sum withdrawal at the time of retirement as per your financial needs.

Who can apply and at what age?

All nationals and expatriate residents of GCC can apply for this product from the age of 20 till the age of 55.

What is the CBD Smart Pension Plan?

CBD Smart Pension Plan is a unit linked investment plan bundled with life insurance cover, which is designed to prepare you for your financial needs during your retirement period. The product allows you to build and grow your wealth for retirement by saving regularly i.e. as little as USD 250 per month.

Disclaimer

This Product is offered by Orient Insurance PJSC for CBD Clients and is subject to their approval. Terms and Conditions of the Insurance policy shall apply. The insurance cover shall only start after the issuance of policy by Orient Insurance. Details presented are for your information only. CBD is neither responsible for, nor guarantees or warrants the quality, fitness for purpose, suitability of the Product / Covers being offered and does not accept any liability and will not be liable for any loss or damage arising directly or indirectly to the client taking the Insurance or beneficiaries or any others. Policy Terms and Conditions apply and insurance is subject to sole discretion of Orient Insurance PJSC.

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